Blog Posts: Financial Integrity
Prosecutors Win Permission to Play Wiretapped Calls at Insider-Trading Trial
Prosecutors won a strategic victory in their high-profile insider-trading case against former Goldman Sachs director Rajat Gupta when a judge ruled that they would be allowed to play secretly recorded telephone calls at the trial scheduled to begin on May 21. “[I]nsider trading cannot often be detected, let alone successfully prosecuted, without the aid of wiretaps,” the judge said.
Former Government Employee Goes to Prison for Insider-Trading Scheme
In March 2012, a federal judge sentenced a former Food and Drug Administration (FDA) chemist to five years in prison for insider trading. The former chemist bought and sold stocks using non-public information he had access to as part of his job. Over a five-year period, his illegal scheme netted him more than $3.7 million in profits and in losses avoided.
FBI Probes Focus on Insider Trading
Federal prosecutors are pursuing insider trading cases with a vengeance, alerting business leaders to the need to make sure their employees understand how to steer clear of this white-collar crime.
Harsh Penalties Await MSB Operators Who Violate AML Laws
Money laundering has long been a concern of organizations that handle cash. Money service businesses (MSBs) are particularly at risk of running afoul of anti-money laundering (AML) laws. The U.S. Department of Treasury has issued guidelines to help MSBs comply with federal regulations, but the guidelines are complex and can be difficult to understand.
Corporate Fraud Is on the Rise — and So Is Fraud Reporting
According to a recent survey released by The Network, Inc., fraud-related incidents in the workplace are on the rise: The total number of reported fraud-related incidents increased by 18.3% compared to the second quarter of 2010.
